The Australian Government will be introducing the First Home Loan Deposit Scheme (FHLDS) in order to support eligible first home buyers in purchasing a home faster. In this article Finance and Mortgage Broker TAYLOR KELLY explains the FHLD Scheme and what the eligibility requirements are for applicants. 

Earlier in the year, the Australian Government introduced the FHLDS that is set to be released on the 1st of January 2020.

The scheme will offer 10,000 eligible first home buyers the chance to purchase their first home with a 5% deposit and avoid paying lenders mortgage insurance.

Lenders mortgage insurance is usually a risk fee added to the loan if a borrower requires more than 80% against the property.


To be eligible for the FHLDS there are certain criteria that the borrowers will have to meet, such as:

  • Must be a first home buyer
  • Earning no more than $125K per year as a single or $200K as a couple
  • Value of the home must meet the scheme caps
  • Must be an Australian Citizen and at least 18 years old
  • If part of a couple – Only de facto or married couples may apply
  • Deposit must be between 5-20% of the property’s value
  • Applicants must intend to live in the property.

Property Price Thresholds

As previously mentioned above there are property value limits that are applicable for the purchase, this is outlined in the table below.

Property Price Thresholds by State
*A regional centre is defined as a city with a population above $250,000.

Property Types

The property types available are:

  • Existing house, townhouse or apartment
  • A house and land package
  • Land together with a separate build contract
  • Off the plan apartment or townhouse

First home buyers who are eligible for this scheme can also use this in conjunction with the First Home Buyer Grant, Stamp Duty concessions and the Super Saving Scheme.

Through a competitive procurement process, multiple lenders will be added to the panel to offer this product to first home buyers. National Australia Bank (NAB) has been the first lender announced to be part of this new scheme, more are set to be released in the coming weeks.

To apply for the scheme you will need to lodge your application through a broker or lender that is part of the panel, your mortgage broker can discuss this with you.

For more information on the FHLDS and eligibility, click here.

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General Advice Warning: The advice has been prepared without taking into account your objectives, financial situation or needs. You should therefore consider the appropriateness of the advice, in light of these objectives, financial situation or needs, before following the advice. We recommend that you speak to your accountant and financial adviser to help you determine whether direct property investment is right for you.

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Finance Education The First Home Loan Deposit Scheme Explained